The United Kingdom and Nigerian governments are seeking private investment for three small hydropower projects in Oyo, Kano and Plateau states to increase electricity generation and improve supply to underserved communities.
The projects involve the development and rehabilitation of the Ikere Gorge facility in Oyo, Ghari Dam in Kano and the NESCO hydropower cascade in Plateau. They were discussed at an investor roundtable in Abuja, where policymakers, financiers and developers explored ways to move them towards financial close.
Supported by the UK’s Partnering for Accelerated Climate Transitions programme, the initiative has funded feasibility studies, dam safety assessments, environmental reviews, energy audits, financial modelling and transaction structuring.
British Deputy High Commissioner, Vicky Seymour, said the UK was working with Nigerian partners to attract private capital into renewable energy projects. Nigeria’s Minister of Power, Joseph Olasunkanmi Tegbe, represented by presidential aide Martin Olajide, said the government was committed to creating an enabling environment for such investments.
Tegbe said the Electricity Act 2023 had expanded opportunities for state electricity markets and private sector participation. He added that the projects must prioritise community benefits, dam safety and environmental protection.
Programme Director Gori Olusina Daniel said combining hydropower with solar energy could improve generation capacity and reliability. He cited the NESCO system in Plateau, where solar integration could raise potential capacity from about 30 megawatts to 100 megawatts or more.
Rehabilitation is also expected to increase its existing installed capacity of 25.5 megawatts to approximately 40.25 megawatts.
At Ikere Gorge, which has been dormant for decades, studies identified hydropower potential of up to 14 megawatts, while a proposed solar-hydropower project targets 100 megawatts. The roundtable also highlighted Nigeria’s estimated 3,500 megawatts of untapped small hydropower potential and presented a draft National Small Hydropower Policy to guide investment and development.
